Diploma PLC (LON:DPLM), the international group of businesses supplying specialised technical products and services,has today announced the acquisition of FS Cables which comprises Caplink Limited and FSC Global Limited. The business is based in St Albans where it employs 62 staff and provides essential specialist electrical, data and communications cable products and solutions to a broad base of primarily UK based customers. This transaction will be immediately earnings enhancing to Diploma PLC and will be reported as part of the Controls Sector activities.
FS Cables is a long established and leading supplier of specialist cable products to installers, end-users and wholesalers for a range of industries including Electrical contracting, Home automation & building management, Rail, Marine and Telecommunications. The business primarily supplies own branded products sourced from a portfolio of long-standing suppliers, but also sources some products from leading branded manufacturers.
The sellers will remain with the business until 28 February 2019, to ensure a smooth management transition.
The audited financial statements of Caplink Limited and unaudited financial statements of FSC Global Limited for the year ended 31 October 2017 reported aggregate profit before tax of £2.7m on aggregated revenues of £15.4m (including intercompany revenues of £1.1m); aggregate profit before tax includes ca. £0.3m of income from a property related LLP which will cease on Completion. Aggregate gross assets at 31 October 2017 were £17.5m and included cash of £6.1m and property related assets of £3.4m which will be retained by the sellers.
The initial cash consideration on a cash and debt free basis to be paid on completion will be £17.0m, before acquisition costs, which will be met from existing cash resources. Deferred consideration up to a maximum of £1.0m will be payable based on aggregate Earnings Before Interest and Tax achieved in the year ending 31 October 2018.
